Under the suspended stand-by
arrangement programme of international monetary fund (IMF), Pakistan's
government had to take various economic reforms in order to prove that it would
stay afloat to repay the loan acquired from the Fund. Although the programme was
stopped before Pakistan could receive remaining $3.7 billion of $11.3 billion
stand-by arrangement (SBA), the government had already taken some initiatives
including the conditioned improvement of the social safety net including Zakat,
Baitulmal, and Benazir income support programme.

There are many pros associated with the
government's commencement of the income support programme it started for the
most vulnerable segments of the society in a bid to strengthen the social safety
net. Proponents of the Benazir income support programme (BISP) said the
donations are helping the poor people living on subsistence in the country to
withstand the vagaries of life. Arguments against it abound drawing bases on
solid reasons however.

One of them is that a paltry sum that
is doled out to poor in the name of income support is not sufficient to meet the
rising household expenditures. Secondly, critics said donations would do much
harm than good to keep underprivileged economically empowered and independent.
Instead of keeping them at the receiving end of some so-called monetary
benefits, the government should primarily do something to create job
opportunities for the unemployed.

Pakistan sees addition of two million
new labours in the workforce every year. With the current growth rate that is
two to three per cent, it is very difficult to generate employment opportunities
for the burgeoning workforce. Experts said the country needs seven to eight
percent growth rate to accommodate the labours. The efforts should be redirected
to improve the economic conditions. Employment generation on fast track basis
can only deal with the monstrous issue manifesting itself in social disruption
and law and order problems around the country.

Under the BISP, the government is
distributing meagre Rs1,000 per month to a vulnerable family. In 2008-09, when
the programme was introduced, total Rs34 billion was set aside to extend the
financial assistance to 3.5 million families. Actual spending during that fiscal
year was recorded at about Rs14 billion. For 2009-10, the allocation was raised
to staggering Rs70 billion for five million families, but released amount could
hardly reach Rs32 billion. Again in the following year, Rs35 billion could find
a way out from the national resource pool in contrast to the budgetary
allocation of Rs50 billion. The ongoing fiscal year is said to have the
allocation equal to the last year's. Total spending until last fiscal came
roughly at Rs96 billion. This is really a huge amount for an economy that is
facing a wide fiscal deficit, and however makes one rightly anticipate positive
impact of it on reduction of poverty incidence. In contrast, poverty is
increasing because of the unabated rise in prices of essential commodities.
According to an estimate, 40 per cent of the country's population is living
below the poverty line. On one hand, the donations are dealt out to people and
environment is being created to make them useless.

The government is constantly raising
the electricity and gas tariffs and domestic prices of the main petroleum
products, making it difficult for even the middle income group to survive let
alone people earning scanty Rs5,000 per month, targeted segment of BISP. In
addition, disastrous impact of floods on rural population that is the prime
recipient of government allowances, offset whatever little positives income
supports could bring about.

Income support programme was aimed at
to supplement the monthly incomes of a quarter of population living below the
poverty line. A monthly disbursement is capable enough to buy two or three weeks
flour for a family. IMF insisted on adequate spending in this regard.

Pakistan rejoined the IMF's programme
back in 2008 when the country's foreign reserves plunged to the dangerous level
of six billion dollar. The Washington-based Fund sanctioned total $11.3 billion
with strict conditionalities. On Pakistan's failure to take certain reforms
related to power sector and tax system, the Fund stopped release of two tranches
of the sanctioned loan.

Questions are raised over the
appropriate outreach of financial assistances. NADRA's records are being used to
find out the targeted families while amount is said to be transferred to woman
family member. According to a report, only two third of them got computerised
national identification cards, thereby automatically striking out a sizeable
portions from the list of deserving recipients. The similar problem is raising
its head in case of distribution of Pakistan Cards. Nadra is said to lack the
facility to get the national identity cards of women computerised. Old ID cards
create serious issues in transference of donations to the flood-affected people.

There are also reports emerging about
the misappropriation of the funds meant for the deserving families and flood
victims. Like other things, the social safety net could also not save it from
the pollutions of political influence. Critics are openly blaming the
authorities for showing biasness in transference of donations and exploiting
BISP as vehicle of gaining political mileage and expanding vote banks.